It prevented the economy from collapsing further. I thought TARP was a bad idea at the time. But when i read more into it, the more sense it made because there was no way that if the financial insitutions collapsed further then somehow a quicker economic rebound would happen just like some claim if only TARP was voted down. Also the TARP money was paid back in full by 2012.
-None of this is true. TARP didn't prevent the economy from collapsing further (the recession only ended in mid-2009), the risk of financial collapse was massively overblown, and the TARP money was not paid back in full by 2012.
http://www.politifact.com/new-hampshire/statements/2012/oct/25/barack-obama/barack-obama-says-banks-paid-back-all-federal-bail/Also we already tried the let-the-economy-fix-itself libertarian approach in 1928. And by the time Hoover took action it was already too late and unemployment reached up to 25%.